The company attributed its slow growth in Europe to the financial crisis in Cyprus and its impact on other economies. Meanwhile, rigorous cuts in federal spending slowed sales in the U.S., the company stated in a financial earnings report.

Extreme cold weather in Europe impacted Shimano’s bike sales, though e-bikes and 29er markets posted good growth. U.S. bike sales were slower this year compared to the warm first quarter of 2012, but weather didn’t impact North American sales as much as economic factors, according to its report.

Shimano also reported that while its sales into Asia continue to climb, they aren’t increasing at the rate they were previously.

The company is forecasting modest growth in revenue this year, citing continuing economic problems in Europe and the U.S.

Shimano didn’t address the impact of the depreciating yen on its earnings, but as recently as last September one U.S. dollar bought 77 yen. Today one dollar buys about 100 yen, so Shimano’s high-end, made-in-Japan components are cheaper now than they were in the fall for companies buying with U.S. currency.